What is Organizational Behavior? Chapter ONE What is Organizational Behavior?

After studying this chapter, you should be able to: Describe what managers do. Define organizational behavior (OB). Explain the value of the systematic study of OB. Identify the contributions made by major behavioral science disciplines to OB. List the major challenges and opportunities for managers to use OB concepts. L E A R N I N G O B J E C T I V E S

What Managers Do Managers (or administrators) Individuals who achieve goals through other people. Managerial Activities Make decisions Allocate resources Direct activities of others to attain goals

Where Managers Work Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. In order to answer the question: What do managers do? French Industrialist, Henry Fayol wrote that all managers perform five management functions ; they plan, organize, command, coordinate & control.

Management Functions Management Functions Planning Organizing Leading Controlling Management Functions Command + Coordination = Leading

Management Functions (cont’d) Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

Management Functions (cont’d) Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

Management Functions (cont’d) Leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

Management Functions (cont’d) Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Management Roles In the late 1960s, Henry Mintzberg, undertook a study to determine what managers did on their jobs. Mintzberg, concluded that managers perform 10 different highly interrelated roles. These 10 roles can be grouped as being primarily concerned with interpersonal relationships, the transfer of information, and decision making.

Mintzberg’s Managerial Roles Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education. E X H I B I T 1–1

Mintzberg’s Managerial Roles (cont’d) Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education. E X H I B I T 1–1 (cont’d)

Mintzberg’s Managerial Roles (cont’d) Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education. E X H I B I T 1–1 (cont’d)

Management Skills Another way of considering what managers do is to look at the skills or competencies they need to achieve their goals. Robert Katz, has identified three essential management skills: technical, human, & conceptual.

Management Skills Technical skills The ability to apply specialized knowledge or expertise. Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations.

Effective Vs. Successful Managers Fred Luthan, looked at the issue of what managers do from a somewhat different perspective. He asked the question: Do managers who move up most quickly in an organization do the same activities & with the same emphasis as managers who do the best job?

Effective Versus Successful Managerial Activities (Fred Luthans) Traditional management Decision making, planning, and controlling Communication Exchanging routine information and processing paperwork Human resource management Motivating, disciplining, managing conflict, staffing, and training Networking Socializing, politicking, and interacting with others

Allocation of Activities by Time

Effective Vs. Successful Managers Conclusion Among successful managers, networking made the largest relative contribution to success, and human resource management activities made the least relative contribution. Among effective managers, communication made the largest relative contribution & networking the least.

Organizational behavior (OB) Enter Organizational Behavior Organizational behavior (OB) A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

Complementing Intuition with Systematic Study “Gut” feelings about “why I do what I do” and “what makes others tick”. Systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Provides a means to predict behaviors.

Contributing Disciplines to the OB Field Psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. E X H I B I T 1–3 (cont’d)

Contributing Disciplines to the OB Field (cont’d) Sociology The study of people in relation to their fellow human beings. E X H I B I T 1–3 (cont’d)

Contributing Disciplines to the OB Field (cont’d) Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. E X H I B I T 1–3 (cont’d)

Contributing Disciplines to the OB Field (cont’d) Anthropology The study of societies to learn about human beings and their activities. E X H I B I T 1–3 (cont’d)

There Are Few Absolutes in OB Contingency variables: "It Depends!!!" Situational factors that make the main relationship between two variables change---e.g., the relationship may hold for one condition but not another. x y In Country 1 May be related to x y In Country 2 May NOT be related to

Challenges and Opportunities for OB Responding to Globalization Increased foreign assignments Working with people from different cultures Coping with anti-capitalism backlash Overseeing movement of jobs to countries with low-cost labor Managing people during the war on terror. Managing Workforce Diversity Embracing diversity Changing U.S. demographics Implications for managers Recognizing and responding to differences

Major Workforce Diversity Categories Gender National Origin Disability Age Non-Christian Race Domestic Partners E X H I B I T 1–4

Challenges and Opportunities for OB (cont’d) Improving Quality and Productivity Quality management (QM) Process reengineering Responding to the Labor Shortage Changing work force demographics Fewer skilled laborers Early retirements and older workers Improving Customer Service Increased expectation of service quality Customer-responsive cultures

What Is Quality Management? Intense focus on the customer. Concern for continuous improvement. Improvement in the quality of everything the organization does. Accurate measurement. Empowerment of employees. E X H I B I T 1–6

Challenges and Opportunity for OB (cont’d) Improving People Skills Empowering People Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior Managing People during the War on Terrorism

A Downside to Empowerment?

Basic OB Model, Stage I Model An abstraction of reality. A simplified representation of some real-world phenomenon. E X H I B I T 1-6

The Dependent Variables A response that is affected by an independent variable (what organizational behavior researchers try to understand). x y

The Dependent Variables (cont’d) Productivity A performance measure that includes effectiveness and efficiency. Effectiveness Achievement of goals. Efficiency Meeting goals at a low cost.

The Dependent Variables (cont’d) Absenteeism The failure to report to work. Turnover The voluntary and involuntary permanent withdrawal from an organization.

The Dependent Variables (cont’d) Deviant Workplace Behavior Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

The Dependent Variables (cont’d) Organizational citizenship behavior (OCB) Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.

The Dependent Variables (cont’d) Job satisfaction A general attitude (not a behavior) toward one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics.

The Independent Variables The presumed cause of some change in the dependent variable; major determinants of a dependent variable. Independent Variables Can Be Individual-Level Variables Organization System-Level Variables Group-Level Variables

Basic OB Model, Stage II E X H I B I T 1-7